Circumventing Labor Laws and Cheating Employees of Deserved Compensation


Impacts of Pandemic

The coronavirus pandemic has brought major disruptions to many businesses worldwide. Business operations are curtailed, and supply chains are disrupted. The financial effect of this pandemic is adverse, the crisis on businesses is huge. Sound business continuity management, efficient liquidity management, prioritization of people’s safety. Continuous engagement of stakeholders during crisis times is a key factor to business resilience in preparation for the new normal and economic sustainability. Management should carefully consider the impact of the coronavirus on business operations. To regain market trust, timely and meaningful disclosures are important. Transparency on the potential effect on the financial position, performance, and viability of the company as well measures taken to manage the risks are important.

Sustaining Business Operations

Management maintains business performance during the pandemic, requiring businesses to act effectively and efficiently in managing resources based on relevant knowledge. Efforts to sustain business liquidity, and to maintain organizational success are based on knowledge sharing and innovation to improve business performance sustainability. Proactive market orientation and innovation can improve business performance. Management activities towards planning and organizing can provide positive impacts to maintain business during this coronavirus pandemic. The implication is to encourage businesses to synergize with market orientation to identify changes and needs, as well as to encourage knowledge sharing and innovation in improving business performance in accordance with market trends.

Efficient Management of Resources

To sustain business liquidity, identification of unknown challenges, strategies, and unusual decisions related to human resources during the COVID-19 pandemic is essential. Dissection of organizations’ human resource management strategies to combat the COVID-19 impacts and implications are important for management to make important decisions, particularly on human resources.

Long Leaves instead of Redundancy

Business, at this time of the pandemic, makes decisions based only on sustainability without consideration to its impact on human resources. Management supposes that imposing long leaves to its employees can provide significant savings to its coffers. Long leaves can be implemented immediately without notice. Businesses need not pay severance pay to affected employees. Affected employees, though have some insights that the ax will be falling soon. Management drastic actions imposing long leaves makes the employees emotionally unprepared and vulnerable.

Imposing long leaves to human resources circumvents the requirements imposed by labor laws. At least one (1) month notice is required for terminated employees. Businesses are required to pay severance pay to affected employees.

No matter how businesses thinks, this practice needs to be stopped as imposing long leave is blatant cheating of employees by non-payment of their well-deserved compensation.